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Approved for a loan you never applied for? It could be a scam

magnific.com

Consumers are being inundated with calls claiming they’ve been approved for loans they never applied for. Some are tricked into paying upfront fees for loans they never receive, while others share personal information that can be used for identity theft.

A local consumer filed a complaint with the Better Business Bureau's Scam Tracker service after being told he was approved for a loan but needed to pay a $250 insurance fee because of his poor credit history. He paid the fee but realized he was being scammed when he was told he needed to pay another $400 to the state of Tennessee because the loan was being originated out of state.

If you’re contacted about a loan application you don’t remember submitting, hang up. Avoid calling unknown numbers back. If you’re tempted to respond to an unsolicited loan offer, do your research first. Check the company out with the BBB, read online reviews to see what other consumers are saying, and independently verify the lender’s contact information. Never share personal or financial information with unsolicited callers.

Hutchinson graduated from Western Maryland College and has received a Master of Business Administration from Wilmington College. He serves as the President and CEO of the Better Business Bureau of the Mid-South.